I am extremely concerned with the implications of what will happen if Greece defaults tonight and subsequently is forced to leave the Eurozone.
Make no mistake, if Greece and its creditors cannot come to an agreement, the effects with reverberate across markets, and its impact will be felt here at home. Global stock and bond markets are already diving in anticipation of a Greek Exit, if investors all flee to the safety of US bonds, our exports and economic growth will be negatively affected, potentially greatly if a default sets off a greater panic.
It is clear now that Austerity was a mistake. Greece's creditors should have restructured Greece's debt repayments years ago, and waited until the Greek economy stabilized before mandating further cuts. Now we will pay the price of the IMF's and Germany's mistakes.